Don’t switch off yet: TV’s ‘water cooler moments’ and 150m subscriptions cancelled in 2022
The rise of streaming services will leave traditional broadcasters with less than half of the global viewing pie in just two years, according to new Deloitte data.
The giant reckons broadcasters’ share of views, which was as high as 73 per cent in 2017, will plunge to 53 per cent in 2022 and 49 per cent in 2023.
However, Rupert Darbyshire, partner in the TMT team, said: “It would be a mistake for advertisers to cut the cord with broadcasters altogether”, praising TV’s ability to create “water cooler moments”. Julian Aquilina, senior TV analyst at Enders Analysis, echoed this point:
“For advertisers, reaching a mass audience simultaneously is key, which linear TV is set up perfectly to do”. He cited the popularity of shows like Strictly Come Dancing and the Great British Bake Off as signalling the ongoing relevance of traditional broadcast for adverts.
Meanwhile, time spent viewing content on streaming platforms is predicted to rise from seven per cent in 2017 to 27 per cent in 2022.
Nevertheless, with rising numbers comes rising competition, and Deloitte estimated that at least 150m global paid subscriptions to streaming services would be cancelled in 2022, with churn rates of up to 30 per cent per market.
But all is not lost for the streaming heavyweights of the world: the average number of subscriptions per person is set to rise, with fickle users cancelling and rejoining faster than you can say Squid Game